multiple-choice: At the beginning of the year, Really Happy Co. estimates annual overhead costs to be $13,400,000, 670,000 machine hours will be operated and 2,500 labor hours will be used. During the year if actual machine hours for the year was 820,000 hours, the actual labor hours was 2,700 hours, the actual overhead costs was $16,600,000. Using machine hours as a base, what is the amount of overhead underapplied during the year?

Select one:

a.$200,000.

b.$3,200,000.

c.$2,128,000.

d.$16,400,000.